As of April 24, 2753 listed companies in Shanghai and Shenzhen have disclosed the annual report of 2021, of which 2507 companies have disclosed the data of R & D expenses. Compared with 2020, the R & D expenses of listed companies increased significantly, especially in electronic information, chemical, pharmaceutical and biological industries.
Undoubtedly, what is the effective way to increase the investment in R & D and strengthen the competitiveness of Listed Companies in the short term? How to balance the long-term and short-term relationship and improve the conversion rate of achievements?
electronic information and other industries
R & D expenses increased significantly
According to the data of China stock market news choice, as of April 24, among the listed companies that have disclosed the annual report of 2021, 2507 have disclosed the data of R & D expenses last year, with a total R & D expenses of 815.64 billion yuan. Among the 2473 companies with comparable data, 2112 achieved an increase in R & D expenses, accounting for 85.40%. Overall, the R & D expenses of these 2473 companies increased by 27.67% year-on-year in 2021.
It can be seen that listed companies will pay more attention to scientific and technological R & D and increase R & D expenses in 2021. The reporter of Securities Daily found that the proportion of R & D expenses of Listed Companies in operating revenue also increased synchronously. In 2020 and 2021, the proportion of R & D expenses of the above listed companies in operating revenue was 2.08% and 2.13% respectively.
Specifically, 216 companies doubled their R & D expenses in 2021, including Guangdong Provincial Expressway Development Co.Ltd(000429) , Huaihe Energy (Group) Co.Ltd(600575) , Gansu Jingyuan Coal Industry And Electricity Power Co.Ltd(000552) and other companies.
It is worth noting that the companies with the largest increase in R & D expenses have obvious industry characteristics. According to the data, among the 635 listed companies whose R & D expenses increased by more than 50% year-on-year, 100 belong to the electronic information industry, 91 belong to the chemical industry, 65 belong to the pharmaceutical and biological industry and 53 belong to the power equipment industry. These industries are also national key development industries, which need to break through quickly in terms of scientific and technological innovation.
“In recent years, the R & D expenses of Listed Companies in electronic information, chemical industry, medicine, biology, electric power and other industries have increased significantly. Listed companies in these industries belong to the type of enterprises that build high barriers and enhance competitiveness through R & D; R & D is the accumulation of enterprises for the future and an important basis for future performance growth.” Pan Helin, CO director of the digital economy and financial innovation research center of the International United Business School of Zhejiang University, believes that.
As a leader in the medical and beauty industry, Imeik Technology Development Co.Ltd(300896) 2021’s R & D expenditure was 102 million yuan, a year-on-year increase of 65.54%, accounting for 7.07% of the operating revenue. The relevant person in charge of the company said that R & D undertakes the important function of manufacturing fresh blood for the company. Only by improving the independent R & D ability, the company can launch non-homogeneous innovative products and create new performance growth points. In 2021, a series of R & D achievements of the company were implemented, and the operating revenue and net profit doubled. The implementation of R & D and product innovation have promoted the common development of the industry, so the company’s performance has a stable support.
Hytera Communications Corporation Limited(002583) is the world’s leading provider of dedicated communications and solutions. The relevant person of the company’s board secretary office told the reporter of Securities Daily, “In recent years, the company has invested more than 13% of its sales revenue in R & D every year. Thanks to continuous R & D and innovation, the company has realized the layout from 0 to 1 in the field of global private network, become the mainstream standard for the evolution of broadband in the industry, and maintain a leading position under the trend of deep integration of public network and private network.”
Shenzhen Sinovatio Technology Co.Ltd(002912) , with R & D expenses accounting for 29.96% of revenue in 2021, ranks top among similar enterprises. “The high investment in R & D expenses is the basis for the company to achieve long-term stable development and achieve long-term strategic objectives. It is one of the main core competitiveness that the company can maintain in the first tier in the increasingly fierce industry competition.” Shenzhen Sinovatio Technology Co.Ltd(002912) the person from the Secretary office told the reporter of Securities Daily.
Geling Shentong, known as the “first stock of artificial intelligence” of the science and innovation board, also believes that R & D is of great significance to the company. According to the latest data disclosed by Geling Shentong, the company’s R & D expenses in 2021 were 121 million yuan, accounting for 41.25% of its revenue. “Investment in R & D has gradually blossomed and borne fruit. The company has established long-term and stable cooperative relations with downstream customers. Mature commercialization has been realized in the fields of urban management, smart finance and commercial retail, and the number of customers and business scale have increased rapidly. Products and solutions in the fields of sports health, rail transit operation and maintenance have entered the stage of customer verification.” Ge lingshentong’s secretary Wang Zheng told the Securities Daily.
market oriented
do a good job in the transformation of R & D achievements
Whether R & D achievements can be transformed into productivity and how to find a balance between short-term and long-term are the key issues for many enterprises.
In this regard, pan Helin said, “in addition to increasing R & D, the R & D efficiency and research direction of listed companies are also very important, which should be market-oriented.”
According to the 2021 annual report of China’s leading innovative drug Shiyao group, the company’s R & D expenses last year were 3.433 billion yuan, a year-on-year increase of 18.8%, accounting for 12.3% of its revenue. The relevant person of Shijiazhuang Pharmaceutical Group told the reporter of Securities Daily, “If there is no innovation, pharmaceutical enterprises will not have development. Enterprises should quickly promote the drugs under research to enter the key clinical stage, realize the rapid transformation of achievements, aim at the direction of cutting-edge technology, combine independent innovation with introduction, and realize differentiated competition. In addition, it is also very important to rely on strength. Select some advantageous projects for overseas development, promote overseas cooperation or authorization, and gradually improve their influence.”
Apt Medical Inc(688617) told the reporter of Securities Daily that focusing on coronary access and electrophysiological medical device business, taking “clinical demand as the guidance, adhering to the product development strategy of” independent research and development “, deepening the mode of” combination of medicine and industry “, connecting clinicians, research institutions and production enterprises, and the strategy of combination of industry, University and research will accelerate the independent research and development products to the market.
For the impact of higher R & D expenses on short-term performance, Kuang Yuqing, founder of lens research, told the Securities Daily that for R & D intensive enterprises, the R & D expenditure of enterprises is large, which may affect short-term profits, but in the long run, high R & D investment can enhance the long-term competitiveness and growth of enterprises.
In addition, for electronic information, medicine and biology, new materials and other industries, great efforts are also needed to motivate and retain talents. Jiang Han, senior researcher of Pangu think tank, said, “if enterprises do not have enough effective retention mechanism, it is difficult to retain real core technicians.”
Pan Helin said that listed companies need to be people-oriented in the transformation of achievements, establish a better talent incentive system within the company, evaluate the value of R & D achievements, and give appropriate rewards according to the evaluation.
Imeik Technology Development Co.Ltd(300896) relevant person in charge told reporters that in order to strengthen the construction of R & D personnel team, Imeik Technology Development Co.Ltd(300896) improved the employee incentive mechanism through listing, improved the construction of corporate culture around the company’s core values, attracted talents with international vision, and retained and encouraged core talents.
Geling deep pupil also pays special attention to the encouragement of talents. According to its prospectus, the important reason why the company has not yet made a profit lies in the large investment in research and development in the early stage and the large share based payment fees arising from the implementation of equity incentive. “In fact, Geling Shentong achieved profits at the operational level in 2020 and 2021, but the share based payment formed by equity incentive caused losses at the statement level. In the future, we will continue to increase investment in R & D, but as a listed company, we will also try our best to maintain healthy performance growth.” Wang Zheng said frankly to the reporter of Securities Daily.
